C8 GBI Good Governance January 2022 Monthly Report – Cirdan Capital

The ‘Good Governance’ certificate was steadily recovering from January’s sell-off but was hit once again as energy prices spiked following the Russian invasion of Ukraine. The certificate ended down 0.6% on the month.
BY JON WEBB

C8 GBI Good Governance February 2022 Monthly Report – Cirdan Capital

The ‘Good Governance’ certificate was steadily recovering from January’s sell-off but was hit once again as energy prices spiked following the Russian invasion of Ukraine. The certificate ended down 0.6% on the month.

We noted last month, that, both in and out of sample, there is only one equivalent drawdown, in Dec 2010 – Jan 2011, when there was a drop of 12.2%. We also noted that these losses proved only temporary and were fully recovered within 4 months. However, these remain difficult times for an ESG L/S strategy given the risks of the world’s 2nd largest gas and 3rd largest oil producer being excluded from the world energy market.

Importantly however, these ESG-related risks are balanced by many examples since 2007, where the ‘Good Governance’ portfolio of US stocks significantly outperforms during periods of financial market stress, as investment flows seek the safe haven of well-governed stocks. Whilst any long-term premia can have demanding periods, we remain convinced that ‘Good Governance’ will continue to perform over time.

Other posts

Thoughts From The Divide: Natural Disasters?

BY JON WEBB
One might have expected yesterday’s CPI data to be of significance for asset prices. As it happened the figures were interesting, with the inflation data surprising to the high side: marginally, but still a miss, while core CPI actually increased for the 2nd month. Hardly proof of resurgent inflation but notable in the context of a series which has been trending lower since Sep 2022. But asset prices didn’t seem to notice the miss. Perhaps that’s because policymakers hardly noticed it either. The quote above came from the NY Fed Williams yesterday, and seems to be representative of policymakers’ focus shifting from inflation to the labor market. So perhaps markets took that cue and paid more attention to the rather striking weekly claims figure (258k). Read more →

NDR Dynamic Allocation Strategy July 2023 Update

BY BRIAN SANBORN
Dynamic Allocation Strategy, indicators, weightings update Read more →

NDR Fixed Income Allocation Strategy April 2023 Update

BY BRIAN SANBORN
The NDR Fixed Income Allocation Strategy, Positioning Update Read more →
Back to all posts →